When a main contractor's closeout team arrives near the end of a project, they replace your contacts, reject verbal agreements, and only pay what's in writing. Subcontractors who haven't finalized paperwork by then often lose money.
Chapters
Knowing what a closeout team in construction is so crucial. So most subcontractors don't know what it is, what a closeout team is. This team from the main contractor that comes in in the final quarter of a project. What they do is their job is solely to save money. Every project is losing money in the last quarter. Clients are getting, you know, the debt has gone up, they haven't been paid, haven't sold their units, they haven't sold whatever it is at the end product. And so debt is mounting up and they're trying to cut costs. It's probably run over budget. And so they sent in this closeout team. The closeout team replaces the team that you were dealing with and all of a sudden it's like, no, no, anything that's in verbal we can't agree to. If it's not in writing, we can't pay you for it. And all of a sudden the relationships you have are completely gone. You gotta know that the closeout team is coming and you gotta make sure that you put all of your paperwork in place before that. The subcontractor's book talks about this in detail, and it's why subcontractors are losing money left, right, and center.